🚀 OG.com and Crypto.com launched regulated crypto perps; DeFi lending protocol saw high utilization rates following Binance hack

Quick Take

• DeFi lending protocols saw high utilization rates following the Binance hack.
• U.S. spot BTC ETFs recorded $203 million in net outflows last week, reversing the $305 million in net inflows the week prior. U.S. spot ETH ETFs saw $432 million in net outflows, compared to $221 million in net outflows the week prior.
• U.S. equities fell in October’s final trading week as a severe mega-cap tech and semiconductor sell-off overshadowed broader market gains. While earnings outside Big Tech came in healthy and small caps posted weekly gains, investor sentiment deteriorated mid-to-late week following quarterly reports from Alphabet, Intel, and Amazon. Mounting skepticism over AI capex timelines and Intel’s historic single-day collapse triggered a punishing Friday rout.
• • The S&P 500 dropped -0.57%, Nasdaq Composite fell -2.00%, Dow Jones Industrial Average fell -0.85%, and Russell 2000 rose +1.29%.
  • Key Market Drivers:
  • • Big-Tech Earnings and AI Capex Backlash: Sentiment broke Thursday when Alphabet dropped 12.6% over search revenue concerns and surging AI spending. On Friday, Intel plunged 28.6% on weak quarterly guidance and PC supply chain constraints, while Amazon shed around 3% weekly as cloud revenue and overall sales failed to offset concerns about accelerated capital expenditures.
    • Fed Holds Rates Steady: On Wednesday, the Federal Open Market Committee (FOMC) held the benchmark interest rate unchanged at 3.75%-4.00% in a 10–2 vote while assessing persistent inflation and resilient GDP growth.
    • Resilient Underlying Earnings and Breadth: Outside of mega-cap tech hyperscalers, Q3 earnings remained solid. Over 82% of reporting S&P 500 companies beat consensus bottom-line estimates, helping non-tech cyclicals absorb mega-cap losses.  
    • Crude Oil Gains: WTI crude rose 0.8% on the week to $104/barrel amid Middle East tensions and fuel infrastructure disruptions.
  • Sector and Style Dynamics:
  • • Value and Small-Cap Outperformance: Equal-weight portfolios and small-cap value outpaced market-cap-weighted growth indices. The Russell 2000 rose +1.29%, supported by advances in nine of 11 S&P sectors.   
    • Leading Sectors: Healthcare (+3.12%), Materials (+2.79%), and Utilities (+2.04%) led weekly gains, followed by Consumer Discretionary (+2.02%). Energy (+1.91%) advanced on strong quarterly profits from ExxonMobil and Chevron amid elevated crude prices.  
    • Lagging Sectors: Tech was the primary market drag. Communication Services ( -5.32%) and Information Technology (-2.03% weekly; -4.89% on Friday alone) underperformed severely amid sell-offs in Alphabet, Intel, and semiconductor equipment suppliers.

Research Dashboard

According to our research dashboard, price and volatility indices decreased -3.10% and -4.43%, respectively, while volume grew +9.34% last week.

Index token prices had mixed performances. Bitcoin (BTC) and Ether (ETH) fell -2.17% and -2.27%, respectively, while HYPE led the growth. Tokens’ volatility mostly dropped, led by ETH.

The $6.3 billion Binance hack on October 29 spilled into DeFi lending within hours. While no major protocol lost funds or became insolvent, Aave froze 292 markets across 16 chains after the exploiter deposited approximately $60 million USDT to borrow 19,762 WETH. Lenders rushed to withdraw stablecoins, pushing lending pools near 100% utilization. Markets reopened within a day as liquidity stabilized.

Weekly Performance

Top-cap tokens mostly saw bearish price action last week. ATOM (-10.8%) and APT (-10.3%) led the drop.

DeFi categories mostly dropped, except for DEX (+2.2%) and Lending (+0.2%).

News Highlights

Company News

• OG.com and Crypto.com launched regulated crypto perpetuals for eligible U.S. traders across the Crypto.com App and Exchange. The product offers continuous contracts, long/short exposure, up to 5x leverage, and risk controls like stop-loss orders and isolated margin. The launch expands regulated U.S. derivatives access and deepens Crypto.com’s trading ecosystem.
• OG.com launched Rips, allowing users to buy digital packs of Pokémon, MLB, NBA, and NFL cards backed by physical items.

Regulation

• The Office of the Comptroller of the Currency (OCC) encouraged community banks to enter the stablecoin payments market, including potentially issuing dollar-pegged tokens under the GENIUS Act. Compliance is set for January 18, 2027, with potential waivers for qualifying applications pending by that date.
• South Korea is considering a fourth postponement of its crypto gains tax, potentially pushing implementation from January 2027 to January 2029. The proposed regime would reportedly apply a 20% tax rate on annual net crypto transfer or lending income, plus local tax, after a 2.5 million won deduction.

Adoption

• Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), launched its tokenization service, enabling eligible clients to create tokenized representations of securities held at DTC while preserving ownership rights and investor protections. Twenty clients have signed agreements, with initial integration with Canton Network and DTCC’s Besu private network.

Others

• Binance suffered an estimated $6.3 billion security exploit involving the unauthorized transfer of approximately $1.5 billion in BTC and around $3.3 billion in USDT and USDC. The FBI attributed the attack to North Korean “TraderTraitor” actors, stated the assets were being converted into ETH for transfer, and urged exchanges, DeFi protocols, and analytics platforms to monitor and restrict transactions from associated wallet addresses.
• Decentralized computing network Akash approved Proposal 346 to authorize a one-way conversion of AKT from its Cosmos-based version to a Solana-based token. Staking would continue until a separate marketplace cutover decision.
• Strategy shareholder approved for daily dividend accrual and payment terms covering STRC and three other preferred stock series, requiring a majority of all outstanding common stock voting power.

Catalyst Calendar

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